Cryptocurrencies are something completely new, shaking up the Forex world! “Cryptocurrency” is digital currency which uses cryptography to secure and manage all transactions, and to create new units of the currency. Decentralized, virtual currencies, which cannot be easily manipulated, debased or controlled by governments. Currencies which have no commercial order flow interfering with speculative and investment operations. These Cryptocurrencies are being offered for trading by more and more Forex brokers, and their price movements have left traditional Forex in the shade. Here you can find out what Cryptocurrencies are, how they work, and how you can best profit from them.
At Dailyforex.com, we focus on the larger Cryptocurrencies, such as Bitcoin, Ethereum, and Ripple. There are many other cryptocurrencies beyond these. They are all created by and used within other computer software platforms utilizing Blockchain technology. Are cryptocurrencies “real money”? Only in a very limited sense – both yes, and no, but certainly more “no” than “yes”. This is because most goods and services cannot be bought with cryptocurrencies, with only a few exceptions. This might change in the future, but for the time being, Cryptocurrencies are likely to be most valuable as investments, or as instruments to trade. If you are considering making a long-term investment in a Cryptocurrency, we recommend that you try to get a basic understanding of Blockchain technology, as well as the technology platform that your designated Cryptocurrency runs on. If you are only interested in short-term speculation or trading and not investing, you might not need to be particularly interested in the details of how the underlying technology works.